Oil surging as U.S. strikes Iran again — ride the energy rally on Exxon and Chev
Thesis
Military conflicts in the Middle East regularly cause oil prices to surge because the region produces a huge share of the world's energy. Each new escalation threatens to knock more supply offline, and this latest strike is no exception. With the war already pushing U.S. inflation to a three-year high, major U.S. oil producers like ExxonMobil and Chevron stand to benefit directly as the oil they sell becomes more valuable by the day. This is a classic geopolitical energy rally.
Strategy approach
Build a momentum strategy on USO (United States Oil Fund) using the daily timeframe. Enter a long position when the price closes above its 10-day exponential moving average and the 14-day RSI is between 55 and 75, confirming upward momentum without being heavily overbought. Exit the position if the price closes below the 10-day EMA for two consecutive days, or if a 6% trailing stop is hit.